On Saturday, the British automotive brand Morris Garages (MG) refuted claims of under-invoicing in the automotive import market, saying that the business is not being investigated by the tax authorities.
“The rumours of under-invoicing are entirely false and unfounded and are nothing but a panic response to the tremendous success of the launch of the British car brand MG in Pakistan,” the company’s spokesman said in a statement.
MG Pakistan has succeeded in buying MG HS directly from its principal/manufacturer, the spokesperson said (SAIC). It can not be considered under-invoicing because the real / declared price is charged to the principal SAIC.
“The ultimate beneficiary of the negotiated price is valued customers, a rare phenomenon in the mobile car industry in Pakistan,” the official said.
“No under-invoicing by MG Pakistan is being investigated by the FBR [Federal Revenue Board].”
The joint venture between JW SEZ and SMIL is MG JW Automobile (MG Pakistan). SMIL is the controlling shareholder in the joint venture and is a subsidiary of SAIC, which is China’s largest car maker and the world’s seventh largest. SAIC bought the prestigious British company MG in 2006 and is now selling cars around the world under the brand.
The official said SAIC’s joint venture company is setting up a local MG automobile assembly plant in Lahore.
In order to obtain some clarity regarding the goods and business of MG Pakistan, MG Pakistan asked prospective customers to approach MG Pakistan.
“Without verifying any fact, the dissemination of news is unethical, contrary to journalistic norms, and harmful to Pakistan’s emerging auto industry, and it may also have serious legal consequences if MG Pakistan decides to take legal action,” said the official.
“MG Pakistan will continue to fulfil its commitments and the company also assures its customers and business partners of its unwavering commitment to promote competition and higher value at lower prices to serve Pakistan’s automobile industry.”
The company imported over 500 full built-up units from China, primarily the MG GS model, according to media reports. The customs value declared is $11,632 per unit, which is too low. The same model is being sold in other nations at a price of $27,000.
A study claimed that the under-invoicing evidence was also exchanged for a comprehensive probe with other line ministries and agencies “as this causes the exchequer billions of rupees of financial loss.” “So far, the company has reportedly evaded more than Rs1 billion in duty and taxes.”